Today, Iteris signed a definitive agreement to sell our Agriculture and Weather Analytics (AWA) segment, composed of our ClearAg and ClearPath Weather product lines, to DTN, LLC, the leading independent provider of decision support solutions to global agriculture, oil and gas, and other weather-sensitive industries. Simultaneous with signing the definitive agreement, Iteris and DTN also agreed to execute a strategic partnership agreement to pursue joint opportunities in the global transportation market.
The decision to sell our AWA segment was made with much debate and careful consideration. In the end, we concluded that Iteris is best able to maximize shareholder value as a pure-play smart mobility infrastructure management solution provider and DTN is best positioned to capitalize on the full potential of ClearAg, especially in the face of continued pressure on agricultural commodity prices.
We want our customers and partners to know that the financial and strategic benefits to Iteris from the sale of our AWA segment include:
- greater commercial focus as a pure-play provider in the smart mobility infrastructure market;
- enhancements to our enterprise-level cost structure, operating efficiency and capital utilization that should accelerate product innovation; and
- ongoing access to key weather and pavement data for our various software products without the burden of the underlying technology platform.
Today, Iteris is in the strongest possible financial and commercial position to capitalize on the many opportunities in smart mobility infrastructure management. Looking ahead, we will continue to set the industry’s performance standard as we expand our market-leading solution portfolio. You can count on the fact that every day, everyone at Iteris is committed to helping our customers and partners ensure roads are safe, travel is efficient, and communities thrive.
President & CEO, Iteris